Millionaire conservative backs Calif. minimum wage increase

Unz is an unusual figure in California's largely left-of-center political culture, untethered to traditional party apparatus, libertarian in his leanings and wealthy enough to make potential rivals nervous.

He declined to provide specifics on his personal wealth — he founded Wall Street Analytics, Inc., which was acquired by Moody's Corp. in 2006.

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He calls the wars in Iraq and Afghanistan "totally disastrous," lambasts the government for bailing out Wall Street banks and sees little difference between Obama and predecessor George W. Bush.

In high school, he ranked among the top math students in the U.S. and studied theoretical physics at Harvard University, Stanford University and Cambridge University, according to his website.

His journalism and writings over the years — touching on subjects as diverse as college admissions, immigration and homosexuality — have been described as everything from insightful to offensive.

In an article for the New America Foundation, he wrote that the government's "vast and leaky conglomeration" of assistance and benefit programs had failed to ensure a decent living for workers, so "perhaps we should just try raising wages instead."

Businesses could raise their prices a fractional amount to cover much or most of the cost of the higher wages, which in turn would feed the economy with spending, he argues.

He estimates that discount retailer Wal-Mart, for example, could cover the cost with a one-time price increase of about 1 percent. Wal-Mart spokesman Kory Lundberg said he did not know the source of Unz's calculation and added, "It seems kind of hard to believe."

Would it be a wash for taxpayers if social spending decreases but the price of consumer goods rises?

Unz acknowledged it would be difficult to craft a precise analysis, since it's difficult to predict if governments would lower taxes or how different industries would cover the cost, through higher prices or cutting into profits. But overall, he argued higher wages and lower welfare spending would be "a very beneficial result."

The proposal is under review by the state attorney general, and if it clears that hurdle Unz can then begin gathering tens of thousands of petition signatures needed to qualify for the November ballot.

It's hard to predict its chances of passage, but raising the minimum wage has had appeal in California in the past — voters endorsed a wage increase by a landslide in 1996.

Bob Mulholland, a longtime adviser to the state Democratic Party, predicted the proposal would help Democrats, defining them as candidates in touch with Main Street.

"I think (Democrats) will see him as a sinner in the past but a welcome angel now," Mulholland said.

But it could become a tricky issue for Democratic Gov. Jerry Brown, who is seeking another term and just signed a law that will raise California's minimum wage to $10 an hour by 2016. Businesses are unlikely to welcome another boost.

"This is the essence of insanity," said John Kabateck of the National Federation of Independent Business in California, who said every bump in the wage threatens jobs created by mom-and-pop businesses also struggling with a new national health care law.

State labor leaders might seem likely potential supporters, but at this point, Unz is being viewed cautiously because of his history in conservative causes. Also, labor is eager to link future increases in the state minimum wage to the rate of inflation.

"We are not totally clear on his motivation or his strategy at this point," said Steve Smith of the California Labor Federation. "He's not someone who has a record of supporting workers."